THE K. Raheja Developers group, a leading real estate developer in Mumbai, is believed to have bought around four per cent (23 lakh shares) stake in loss-making polyester company Nirlon Ltd through stock market route.

According to market sources, the shares by the group have been bought by various group investment companies such as Raheja Leasing & Investment, Pragya Capital Services and Prayag Agencies.

The group started buying these shares from April onwards, said brokers.

When contacted, a top official of K. Raheja Developers refused to comment on the issue.

"This is price-sensitive information and if there is some development on this, it would be disclosed as per the SEBI takeover regulation."

However, the official confirmed that the group was developing real estate on the land owned by Nirlon at Goregaon (East) in North Mumbai.

The group is developing a residential complex, `Sharewood', jointly with Pranik Landmark, a division of Lupin Laboratories.

Brokers said that the interest in the Nirlon stock is due to the property it owns in Mumbai, since the best way to acquire the property is by buying the company's shares.

"The company has huge surplus land in North Mumbai, which is good for developing commercial and residential properties," said a broker.

Videocon International has already bought 3.35 per cent stake in the company. Various other groups are also eyeing the company's real estate.

Promoters of the company hold 34.87 per cent stake, UTI has 4.57 per cent, banks and FIs hold 2.89 per cent, 14.11 per cent is with NRIs/OCBs, the public holds 31.39 per cent, and the rest is in the hands of private corporate bodies at the end of March 2004 quarter.

Despite the interest of various corporates the stock price has not risen. In fact it has fallen from Rs 7 levels in April-May to today's closing price of 5.81, down 1.86 per cent on the BSE.

There has been increased interest in various factory lands in Mumbai that are lying idle.